Section 8 Company Registration Fees
Register Section 8 Company (NPO/NGO)
24,710/- (inclusive of all taxes & fees)
Important Points
- - Section 8 registration in 25 to 30 days with License.
- - No minimum capital requirement.
- - Best substitute for trust, society registration.
What is a Section 8 Company?
A section 8 company which earlier was known as section 25 company is a legal form for non profit organizations (NPO) or Non Governmental organizations (NGO). Section 8 company is licensed company which is authorized to work anywhere in the country.
How to register section 8 Company in India ?
Section 8 company registration in India is unique and different concept. It is an non profit entity engaged in social work for the benefit of the country. The registration can be divided into three parts:
# Prepare DSC and file Name Approval: The first step is to prepare DSC and DIN. This takes sometime one to two days. Thereafter, you need to file for name approval. The name should be unique and should end with words like foundation, sanstha etc.
# File for License: After getting name approved, the next step is to prepare all the documents and then apply for license to the Regional director via form INC 12. This approval takes most of the time.
# File for Incorporation: After getting the license, we need to file for incorporation and once company is incorporated, you can start the social work under this company.
Documents Required for Section 8 Company Registration
- Copy of PAN Card
- Aadhar Card
- Address Proof (Bank Statement, Mobile Bill, Telephone Bill)
- Passport Size Photo
For Registered Office
Ownership Proof (Electricity Bill etc)
Utility Bill (Gas Bill, Electricity Bill)
NOC(Download format)
Section 8 Company Registration Process
Section 8 company registration process requires at-least two people to start with. Further, there is no limit for initial capital and hence, it may be started with Rs.10,000. Here is a section 8 Company registration procedure:
# Step 1 - Prepare DSC. DIN & Name approval: Before even applying for the DSC, DIN etc one must arrange all the documents properly, because most of the rejection happens due to improper documentation.
# Step 2 - Apply for License: The second and the most important part is to get license from the government to do the social work in India. This is done through e-form no.12 with proper application and attachments.
# Step 3 -File for incorporation: The third step is to file the incorporation along with all necessary documents. The form is attached with all the important attachments like MOA, AOA, declarations etc.
Time & Cost for Section 8 Company Registration
The Total Cost Breakup
| Items | Qty | Price |
|---|
| Digital Signature Certificate (DSC) | 2 | 1,998 |
| Director Identification Number (DIN) | 2 | Nil |
| Name Approval | 1 | 1,000 |
| RD Approval Fees | - | 2,000 |
| MOA, AOA and Incorporation Fee | - | 6,000 |
| PAN and Tan Application | - | 180 |
| Professional Fee (Inclusive of Taxes) | - | 11,321 |
| Total NPO/NGO/Section 8 Registration Cost in India | 24,710
|
|---|
Note: Stamp duty Extra for States: Punjab, Kerala and Madhya Pradesh.
Income Tax Exemptions to Section 8 Companies
Only by registering a section 8 company does not result into income tax exemption and further exemption to the donators. Rather section 8 company is the first step to claim the income tax exemption. There are basically two types of income Tax exemptions which are as follows:
- - Exemption to Section 8 Company from Income Tax: This exemption is claimed under Section 12AA of the Income tax Act, 1961. As per section 12AA, an application is filed to the Income tax commissioner along with the necessary supporting documents. If Income tax commissioner is satisfied, then he shall grant the tax exemption to the company. However, complying with section 11 to section 13 is very important to avoid revocation of exemption.
- - Exemption to donators under Income tax: This exemption is claimed by donators under section 80G. However, the donators is only eligible to take tax exemption if the section 8 company is registered under section 80G. This exemption can be filed along with section 12 exemption or anytime after that.
Mandatory Requirements for Section 8 Company Registration
Section 8 company are formed by those who do not have any profit motive, rather they have a social objective which they want to achieve. Hence, there mandatory requirement to start the section 8 company are as follows:
- Minimum of two persons are required along with the documents stated above.
- You must have a plan for your social objectives, as ROC may ask for the same.
- Whatever, you choose the capital of the company, you must invest the same into company within 2 months.
Created & Posted by (Twinkle)
Accountant at TAXAJ
TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you with a One-Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visits TAXAJ
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